A precious metals IRA allows you to buy IRS-approved gold or other precious metals like silver, platinum, and palladium within a tax-advantaged individual retirement account. Your precious metals are stored in a secure depository for safekeeping. Investing in precious metals helps protect your savings and preserve your purchasing power during periods of inflation when the dollar loses value. In addition, placing some of your retirement funds in a precious metals IRA protects you against currency and market crashes. The prices of precious metals like gold and silver tend to go up as the stock prices go down

When you invest in a gold IRA or other precious metals, you cannot take possession of the metals or personally store them. Instead, the metals are stored in a secured and insured depository. You will be eligible to begin taking distributions when you attain the age of 59 ½ years. When you reach this age, you can take your distributions in the form of precious metals or cash payments.

A conventional IRA is not designed to hold physical assets like silver or gold. Instead, you will need to open a self-directed IRA account with a qualified custodian in charge of managing the gold IRA. 

If you have an existing IRA and 401 (k) account that meet the eligibility criteria to rollover or transfer into a precious metal IRA, you will not face any tax consequences or penalties when transferring your assets. Your gold IRA custodian can help you determine whether your current retirement plan is eligible for a rollover. 

Numerous types of retirement products and accounts can be converted into a precious metal IRA. These accounts include an IRA, 401 (k), Roth IRA, TSP, 403 (b), SEP, and annuity. Please note that there are some eligibility requirements that an account must meet before a transfer or rollover. When you contact your gold IRA custodian, they can confirm whether you can convert your retirement account. 

An IRA rollover takes less than two weeks. However, every application is unique - the exact period it takes to roll over varies. Your gold IRA custodian will help you gather and fill all the necessary documents for the rollover. The custodian will also provide you with an estimate of how long the rollover will take. 

All types of investments carry some risks. Some of the risks associated with investing in precious metals are: the prices of precious metals might rise or fall over time, meaning that you may sell for more or less than you paid for. Unlike paper assets, precious metals do not yield income like dividends. 

Yes. The IRS requires every investor to have a gold IRA custodian. The custodian administers and tracks the assets in your IRA account on your behalf

To put gold in a self-directed IRA account, you need a custodian to create and administer the account. IRA custodians are usually banks, brokerage firms, credit unions, savings and loan associations approved by state or federal agencies to provide asset custody services. Your IRA custodian won’t select a precious metal dealer for you - this is your responsibility. However, most custodians have a list of precious metal dealers that they can recommend to you. Choosing the IRA custodian to use is complicated. Below are some of the crucial factors that you should consider when selecting a custodian:   

• Transparency: You should ensure that you understand all the involved costs upfront to avoid unpleasant surprises. Some custodians might have some hidden fees that you only discover after investing. 
• Flexibility: Every investor has unique needs and goals. You should go for a custodian who will cater to all your needs. Avoid custodians who adopt a one-size-fits-all approach. 
• Track record: The custodian you choose should have an outstanding reputation from objective third parties like Business Consumer Alliance (BCA) and Better Business Bureau (BBB). Also, consider what other customers say about the custodian. 
• Qualifications: You should only choose a custodian with all the required licenses, insurance, registrations, and bonds to protect your investment. 

Owning a gold IRA will come with additional expenses that you would not incur in a conventional IRA. The additional costs include:

• The seller's fees: You will incur mark-up costs depending on whether you're investing in coins, bullions, proofs, etc. 
• Custodian fees: Even if you must encounter custodian fees with any type of account, the costs are higher for a gold IRA. 
• Retirement account set up is a one-time fee that you will encounter when establishing your new IRA account. 
• Storage fees: You will incur storage fees to hold your gold by an approved depository. 
• Cash-out costs: You will incur this cost if you intend to close your gold IRA by selling your precious metal to a third-party dealer. You could lose considerable capital unless prices have risen considerably since you acquired the gold.